Uber Begins Accepting Cash Payments In Four More Cities In India

Uber is getting serious about cash payments. The U.S. company, well known for its seamless payment system that requires users to own a credit card, is expanding a cash payments trial that started in India to four new cities in the country as it aims to offer greater choice and reach new customers.

The company’s cash payments test started in Hyderabad in May (it expanded to Nairobi, Kenya, a week later), and now it being extended to cover Ahmedabad, Chandigarh, Jaipur, and Kochi. As I wrote when the original pilot went live, passengers must select cash payments before ordering their ride in order to use the option.

“We know that cash is a dominant payment options for millions in India, especially in small cities,” Bhavik Rathod, general manager of Uber Bangalore, told TechCrunch in an interview. “This [pilot] is part of our investment in India, we’re deeply committed to this country.”

Rathod said the response to cash payments had been “tremendous,” but declined to disclose what portion of rides were paid for via cash. Uber isn’t saying what longer term plans it has for cash payments, but it’s fair to assume that the option will be introduced in many emerging markets where credit card ownership is proportionately lower than the West and Uber’s rivals already offer the payment option. Put simply, it needs to be more flexible if it wants to grow and reach new demographics.

Accepting cash might seem like a piece of cake for Uber, but Rathod explained that it required signification “innovation on the backend” of the company’s platform.

“Drivers and riders have always been carrying cash, so we had to understand their behavior and assess which tech could support this,” he explained. That was done using a combination of Uber’s India-focused team, based in the South Asian country, and its centralized tech team in San Francisco.